Coveting They Neighbor’s Car

Supply chain interruptions brought on by COVID have been an issue for businesses and consumers alike in the past year. It can depend on industry – some are feeling it more than others – but it is clearly a widespread issue.

We even saw the US government last week order its largest port to operate 24/7 to catch up as dozens of cargo ships are anchored in harbor waiting for a dock to unload.

Here in Canada, one industry that has been especially challenged by supply chain issues is automotive. Assemblers can’t get their hands on chips so vehicles are sitting – virtually complete – except for the chip.

And now that is finding its way through the system to the consumer. Just take a drive past any dealer lot these days and you’ll see more empty space than inventory as backlogs grow. In July, for example, auto dealers in this province sold 200 fewer units than a year ago. By August that shortfall had risen to 1,100 as product scarcity is changing the market….driving up the price of used vehicles and making new units a coveted treasure.